The Sixth
Five Year Plan provides for a 'total outlay in the public sector of Rs.
97,500 crores at 1979-80 prices. This includes the current outlay of Rs.
13,500 crores which is mainly for the maintenance of services created
during the Plan period and which does not create assets. Thus, the public
sector investment outlay in the Plan will be Rs. 84,000 crores.

4.2
In comparison with the Fifth Five Year Plan (197479), the outlay
for the Sixth Plan represents an increase of 148 per cent in nominal terms.
Even after allowing lor the rise in the price level in the intervening
period, the increase comes to more than 80 per cent.

4.3
of the total outlay of Rs. 97,500 crores, Rs. 47,250 crores is in Ithe
Central sector and the balance of Rs. 50,250 crores is in the States and
Union Territories. The share of the latter in the total works out to 51.54
per cent. Annexures 4.1 and 4.2 show the distribution of Plan outlays
among the various States and Union Territories.

4.4
The sectoral allocations of the public sector outlays have been determined
in the light of the pattern of growth of the economy visualised in the
next five years (indeed, over the next 15 years), the capacity already
available in the economy and the objectives of the Plan. A considerable
part of the investment in the Sixth Five Year Plan will be for on-going
projects; many of these will generate output during Or towards the end
of the Plan period. It is necessary to provide for the completion of such
projects. Similarly, a part of the investment in the Sixth Plan, especially
on projects with relatively long gestation, will generate output in 'the
period beyond the Sixth Plan. In determining the sectoral distribution
of outlays in the Sixth Plan, help was taken of an investment planning
model which is inter-connected with the dynamic input-output framework
used for projecting output, employment and other macro-economic targets
of the economy. For a few specific programmes such as Integrated Rural
Development and the National Rural Employment Programme, investment requirements
were worked out on the basis of the programme content.

Annexure
4.3 gives the details of public sector outlays in the Sixth Plan.